Loan Products by Union Bank of India
Special Union Education Loan Scheme (Abroad)
- Up to 40 lacs without collateral (unsecured loan)
- Up to 1.5 cr. with collateral (secured loan)
- 100% of total expenses covered
- Moratorium period of course period + 1 year
- Repayment tenure up to 15 years (after moratorium period)
Union Bank Education Loan for India
- Up to 4 lacs without collateral (unsecured loan)
- Above 7.5 lacs with collateral (secured loan)
- 100% of total expenses covered
- Maximum repayment tenure up to 15 years
Union Bank of India Abroad Education Loan Details
Overview
Union Bank of India offers a variety of education loan options to help finance your studies in India or abroad. Here's a quick breakdown:
- Loan amount: Varies depending on the scheme, but can go up to Rs. 40 lakhs without collateral for merit-based admissions.
- Interest rates: Competitive rates starting from 9.25% p.a. (subject to change).
- Collateral: Not required for loans up to Rs. 40 lakhs for certain programs. Higher loan amounts may require collateral security.
- Repayment: Flexible repayment options with a moratorium period during your studies.
- Special schemes: Union Bank offers special schemes like the Union Education Premier Loan for studies abroad and the Union Education Skill Development Loan for vocational courses.
Benefits:
- Competitive interest rates
- Collateral-free loans for eligible students
- Flexible repayment options
- Finance for various educational expenses
Eligibility
The student should be an Indian National and Secured admission in full time Post Graduate Courses in the Premium University Abroad through entrance examinations conducted by recognized universities / institutions and other approved authorities.
Expenses Covered
- Tuition fee payable to college / school / university
- Hostel/mess charges
- Examination / Library / Laboratory fee
- Insurance premium for the student borrower
- Caution deposit, building fund / refundable deposit supported by Institution bills / receipts
- Travel expenses / passage money for studies abroad
- Purchase of books / equipment's / instruments / uniforms
- Purchase of computer / laptop at reasonable cost, if required for completion of the course
- Any other expense required to complete the course - like study tours, project work, thesis, etc.
Quantum of Loan
- Minimum: Rs.7.5 Lakhs
- Maximum: Rs.1.5 Cr.
Margin
| Quantum of Loan | Margin | |
|---|---|---|
| Up to Rs. 4 lakhs (for India) | Nil | |
| Above Rs. 4 laks (for India) | 5% | |
| Upto Rs. 40 laks (for Abroad) | 15% | |
| Above Rs. 40 lakhs up to Rs. 1.5 Cr. (for Abroad) | with 100% collateral | Nil |
| with minimum 50% collateral | 15% | |
Mess charges / Living expenses
In cases where the mess charges/living expenses are not mentioned/indicated in the fee structure provided by the institute, a reasonable amount is to be considered based on the living expenses of the country. The mess charges/living expenses will be allowed within the overall sanctioned limit.
Interest Rate
| Quantum of Loan | Collateral Coverage | Rate of Interest |
|---|---|---|
| Up to Rs. 40 lakhs | without collateral | EBLR + 0.50% |
| Up tp Rs. 1.5 Crores | 50% and < 100% collateral | EBLR + 0.25% |
| 100% collateral | EBLR |
Note: EBLR stands for External Benchmarks Lending Rate
Processing Fee
No processing charges to be levied.
However, an upfront fee of Rs.5000 to be charged to the student, which will be refunded if the student avails the loan within a period of 3 months from the date of sanction.
If the student does not avail the loan within a period of 3 months from the date of sanction, then the deposit of Rs.5000 to be appropriated as processing charges.
A suitable stipulation to this effect should be included in the sanction letter issued to the student.
Repayment period & Moratorium
- 180 months / 15 years (After moratorium period)
- Course period + 1 year
Co-applicant / Guarantor
Either of the parents or spouse to be made co-applicant / guarantor.
Income/means of the co-applicant / guarantor is not to be considered while sanctioning the loan.
All the formalities with regard to the co-applicant / guarantor will have to be completed before release of the loan.
RLP / Branch nearest to the place of residence of co-applicant / guarantor to complete all the required loan formalities.
Minimum CIBIL score or equivalent CIC score of the co-borrower/guarantor shall be 650 & above.
Note: SB account of parent is mandatory.
Insurance
Term life insurance policy to be obtained & assigned in favour of the bank.
The policy should be in the name of student, for an amount not less than the loan amount and for the tenure covering course, moratorium and repayment period.
The premium of insurance can be included in the loan amount, if requested by the student.
Branch should explore the possibility of insuring the borrowers under SUD Life's New Sampoorna Loan Suraksha Insurance Policy. However, student may have option to approach any insurance company for lesser premium or Branch to arrange for the same.
List of Premier Institutes / Universities & Courses Country Wise:
You can find the complete list of Premiere Abroad Universities here
Frequently Asked Question's
- An Indian citizen.
- Have a confirmed admission offer from a recognized university abroad.
- Meet the bank's minimum academic qualifications (refer to bank website or branch for details).
- Have a co-applicant (parent/guardian) with a good credit history and stable income (exceptions might exist for exceptional academic profiles).
- Completed application form.
- Admission letter and fee structure from the university.
- Academic transcripts.
- KYC documents (proof of identity and address).
- Co-applicant's income proof and bank statements.
- Other documents as requested by the bank (e.g., scholarship letters, course details).